Dec82025
Probate Q&A Series

When should beneficiaries expect a timeline and written estimate of trustee fees and ongoing costs? – North Carolina

Short Answer

Under North Carolina law, a trustee’s compensation must be reasonable, and if it is not set in the trust, the trustee generally provides fee information when trust administration begins and before taking sizeable fees. For ongoing fees above a small percentage of trust assets, the trustee may give written notice describing the amount or the method of calculating compensation, and beneficiaries then have a short window to challenge it in court. Court-supervised trusts tied to a probate estate also generate court cost schedules that can be estimated from the inventory. Actual timing and detail depend on the trust terms, the type of trust, and local practice.

Understanding the Problem

The question is when, in North Carolina, beneficiaries of a testamentary trust can reasonably expect a timeline and written estimate of trustee fees and ongoing costs. The context is a probate estate with a will that creates a trust, a named trustee, and siblings who want clarity on how and when the trustee will be paid and what the trust will cost to administer. The issue focuses on whether North Carolina law requires advance written disclosure, and at what point during probate and trust administration that information typically becomes available.

Apply the Law

North Carolina law governs trustee compensation, required notices to beneficiaries, and court costs when a testamentary trust is administered in connection with an estate. The main forum for fee challenges and many trust disputes is the Clerk of Superior Court in the county where the will was probated. Time-sensitive triggers include when the trustee first proposes compensation and any statutory period for beneficiaries to seek review.

Key Requirements

  • Reasonable compensation: If the trust does not set the trustee’s fee, the trustee is entitled to reasonable compensation under the circumstances, based on factors such as the size and complexity of the trust and the work involved.
  • Notice for larger or periodic fees: For fees over a small percentage of trust principal, or where the trustee chooses to give periodic fee information, the trustee may provide written notice to qualified beneficiaries describing the proposed amount or the method of computing compensation and the right to seek court review.
  • Court oversight and costs: Beneficiaries or the trustee may ask the Clerk of Superior Court to review the reasonableness of compensation and certain expenses, and court filing costs and estate fees are calculated from the inventory and later accountings.

What the Statutes Say

Analysis

Apply the Rule to the Facts: In a North Carolina probate estate with a will that creates a testamentary trust, the trustee’s first realistic opportunity to give a meaningful fee estimate usually comes after the personal representative files the 90-day inventory and the general size and type of assets (including any joint and payable-on-death accounts) are clear. If the trust instrument itself sets a fee schedule or percentage, that language effectively supplies an estimate and timeline as soon as the trustee receives and reviews the will and trust terms. If the document does not specify compensation and the trustee expects to charge more than the small statutory percentage, the trustee may provide written notice of the planned compensation or method of computation, which, in turn, gives beneficiaries a concrete written estimate and a defined period to seek court review.

Process & Timing

  1. Who files: The personal representative files the initial 90-day inventory with the Clerk of Superior Court in the North Carolina county where the will was probated, using the inventory form approved by the North Carolina court system. When: The inventory is due within 90 days after qualification; it identifies probate assets and provides the first reliable basis for estimating trustee fees and court costs tied to the trust.
  2. Once the testamentary trustee receives the will and any trust schedule, the trustee reviews the trust terms, identifies the assets that will actually fund the trust (as shown in the inventory and supporting documents), and determines a proposed compensation structure. If the trustee’s fees are not pre-set by the trust and will exceed the statutory percentage threshold or will be paid periodically, the trustee prepares a written notice describing the compensation amount or the formula and provides it to qualified beneficiaries, starting the short statutory window for any challenge.
  3. If a beneficiary objects to the proposed trustee fees or ongoing costs, the beneficiary (or the trustee) may initiate a proceeding with the Clerk of Superior Court seeking review of the reasonableness of the compensation and, if appropriate, adjustment or refund of excessive amounts. The court’s decision then governs the permissible trustee fees going forward and may affect how future accountings and cost estimates are prepared.

Exceptions & Pitfalls

  • Where the trust document itself sets the trustee’s fee or a clear formula, there may be no separate statutory notice of compensation, so beneficiaries need to review the trust language carefully rather than wait for a separate written estimate.
  • If the testamentary trust is not required to account to the Clerk of Superior Court, the trustee’s fee estimates and ongoing costs may be shared through informal statements or private accountings instead of court-filed documents, which can make it harder to track deadlines for objections.
  • Joint accounts and payable-on-death assets listed on the inventory may not actually fund the trust, so relying on gross inventory numbers without checking which assets will pass into the trust can lead to confusion about the real base for trustee fees.

Conclusion

For a North Carolina testamentary trust, beneficiaries should expect meaningful information about trustee fees and ongoing costs once the 90-day inventory has been filed and the trustee has reviewed the will and trust terms. If the trust does not fix the trustee’s compensation and the trustee plans to charge above the small statutory percentage or on a periodic basis, written notice describing the compensation or its formula can provide a clear estimate, followed by a short window to request court review. The key practical step is ensuring the trustee receives the governing documents promptly and then watching for any written fee notice or early accountings filed or circulated during administration.

Talk to a Probate Attorney

If an estate or testamentary trust in North Carolina raises questions about trustee fees, cost estimates, or timelines for disclosure, our firm has experienced probate attorneys who can help clarify the rules and deadlines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for any specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If there is a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.